Topic:
BANK LOANS; BUSINESS (GENERAL); MORTGAGE LOANS; TRAINING PROGRAMS; LICENSING; EDUCATION (GENERAL);
Location:
MORTGAGES; OCCUPATIONAL TRAINING;

OLR Research Report


January 25, 2007

 

2007-R-0073

EDUCATION REQUIRED TO OBTAIN A MORTGAGE BROKER LICENSE

By: Soncia Coleman, Associate Legislative Analyst

You asked for the education and experience required to obtain a mortgage broker license in Connecticut and for information on some other states that have more stringent requirements.

A mortgage broker is a person who, for a fee, commission or other valuable consideration, directly or indirectly, negotiates, solicits, arranges, places or finds a mortgage loan that a mortgage lender would provide. Generally, in order to obtain a mortgage broker license in Connecticut, the applicant (individual, company, or other legal entity) must designate a person with supervisory authority over the location to be licensed. This person will have authority over the brokerage activities at the location and must submit a resume, with the appropriate application, showing that he worked in the mortgage brokerage business for at least three years of the last five years immediately preceding the application. Applicants may not substitute any other type of experience or certification. A person may only be the supervisory authority for one licensed location at a time and must also be working at the office to be licensed (CGS 36a-488 and 513).

It appears as if neighboring states have similar experience requirements. For instance, Massachusetts requires applicants to demonstrate that they possess the necessary educational and business experience (one year of experience or the completion of a formal training course as detailed in regulation). Rhode Island requires a resume and employment history reflecting at least five years of experience. New York requires brokers to provide a notarized statement detailing all the experience that qualifies them for registration. Licensed real estate brokers and attorneys automatically meet the experience requirements if they are in good-standing. Otherwise, applicants must have two years of experience relating to the mortgage brokerage business. New York has also passed a law requiring the registration and education of mortgage originators. The law takes effect in 2007, however, the New York banking department has two years to implement the requirements.

Table I below shows the requirements in a few randomly selected states with more stringent requirements.

Table 1: Mortgage Broker License Education and Exam Requirements

Florida

Florida statutes require applicants to take 24 hours of classroom instruction at a qualified mortgage business school that meets minimum accreditation requirements. Applicants must then pass a written examination (FSA 494.0033)

Indiana

During the 24-months before submitting an application an applicant needs to complete a minimum of 24 hours of approved credit courses related to the mortgage loan business (Ind. Code 23-2-5-21)

Kentucky

New mortgage brokers, and those licensed in another state for less than one year, must complete a 30-hour education course (KRS 286.8-032(7)). All other applicants are required to complete 12 hours of approved continuing education courses.

Pennsylvania

One mortgage professional at each licensed location must complete at least six credit hours of continuing education per annual renewal period (10 Pa. Code 44.1 et seq.)

New Jersey

The individual upon whom the business entity's license will rely or a replacement or additional individual must take and pass the state licensure examination (NJSA 17:11C-1 et seq.)

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